It’s really time to stop referring to Downtown as just a “publisher”.
It it wasn’t evident before, today (January 22), the music company has significantly ramped up its presence in recorded music – by buying Amsterdam-based B2B tech and services company, FUGA.
The deal, for an undisclosed fee, comes 10 months after well-funded Downtown acquired CD Baby and its parent, AVL Digital Group, in a deal valued at circa $200m. (Technically, AVL has acquired FUGA under the parentage of Downtown.)
With the addition of FUGA, Downtown now manages more than 20 million copyrights worldwide with global operations in 19 cities across North America, South America, Europe, Asia, and Australia, all supported by a growing team of 500 employees.
FUGA will continue to function as a standalone business within Downtown’s suite of distribution and monetization capabilities operated across AVL.
“We could not be more enthusiastic about becoming part of the Downtown portfolio. This acquisition will give FUGA the backing to achieve our global ambitions in this space so we can continue serving the independent music community, developing our service offering and improving our technology. We share a common business approach and philosophy with Downtown, one rooted in providing control and flexibility for creators and rights holders — it is a perfect fit,” said FUGA CEO Pieter van Rijn.
FUGA’s platform provides content management, workflow and distribution services, delivering to more than 260 digital service providers globally. Its client base over over 500 covers distributors, record labels, artist services companies and other rights holders.
“Pieter and the team at FUGA have built an impressive business that offers clients an impeccably high level of service. Their robust technology, well-earned reputation for innovation on behalf of the clients they serve, and global perspective of the digital music industry are welcome additions to our existing set of capabilities and services,” said AVL CEO Tracy Maddux (pictured),
Downtown Music Holdings CEO Justin Kalifowitz said: “The exceptional team at FUGA and their unique focus on providing best-in-class capabilities has put the company at the forefront of empowering the fastest growing sector of the music industry.
“Following our acquisition of AVL, integrating FUGA is a natural next step for Downtown in developing businesses that support a more equitable and innovative music ecosystem.”Music Business Worldwide